Monthly Crypto Adoption and Regulation Report: January 2024

Crypto space is filled with surprises. There is always something new to grasp on. This Coinpedia report encompasses everything you need to know about the Crypto Adoption and Regulations in January 2024. We have utilized the top-notch resources to compile this simple analysis for you.

Important Crypto Regulations in January 2024

We have compiled a region-wise report regarding crypto regulations, which were in the news in January 2024.

2.1. USA

• The United States of America announced a new framework in 2022 for regulating crypto assets.
• It gave power to existing market regulators like the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). The SEC was seen regulating the crypto sector.
• The lawsuits and complaints against Ripple, Coinbase, Binance, and many other crypto products and services occurred in 2023.
• In 2023, a district court of appeals decided in favor of Ripple. It decided that Ripple’s sale of XRP were securities offerings only when sold to institutions and not when they were sold on exchanges. 
• Another landmark decision was made in November 2023 that vacated the Commission’s denial of Grayscale’s application to convert its Bitcoin ETF Trust to an ETF that keeps Bitcoin. 
• The Commission was ordered by the court to reconsider the decision. 
• In January 2024, the first Bitcoin Spot ETF was approved!
• US SEC they approved 11 spot Bitcoin ETFs, including offerings from prominent financial institutions such as BlackRock, Vanguard, Franklin Templeton, Valkyrie, Fidelity, and Invesco on January 10, 2024.

2.2. China

• Despite China’s ban on crypto trading and mining since 2021, a growing number of Chinese investors are navigating the restrictions to funnel millions daily into crypto currency. 
• Emergence of brick-and-mortar crypto exchanges in Hong Kong became quite popular in January 2024. 

2.3. Canada

• Canada is all set to introduce new regulations for crypto donations.
• On January 23,2024, Justice Richard Mosley said that there was no national emergency justifying the invocation of the Emergencies Act and the decision to do so was very unreasonable.
• Crypto mining was seen flourishing in 2023. It continues the same trajectory in Canada in 2024 as well!

2.4. United Kingdom

• UK’s new crypto advertising rules, regulated by the Financial Conduct Authority, came into the picture in October 2023.
• These rules are causing complications for some crypto firms, thus causing their exit from the space. 
• The new rules talk of a cooling-off period for first-time investors to make the marketing of crypto products more transparent and accurate. 
• Fintech firm Revoult suspended its trading for UK businesses in January 2024. The payments giant also paused its crypto activities in the UK until early 2024. 
• The progress on the UK crypto regulatory front was seen in December 2023, when the UK introduced new regulations for supervising the nation’s Digital Securities Sandbox , which came into force on January 8, 2024. 
• It aims to facilitate adoption of digital assets across financial markets with monitoring from the Bank of England and FCA.
• With the UK’s general election around the corner, Rishi Sunak’s ambition of creating a global web 3 hub in the UK might get put on hold. 
• Exchanges like Coinbase, Crypto.com and Gemini implemented risk assessments and finance tests for their UK users in response to the new regulations which require the crypto companies to inform users about the risks associated with crypto trading and advertise themselves responsibly. 

2.5. Japan

• Japan plans to revolutionize its corporate crypto taxation , considering 2024 reform to leave out long-term holders from taxes on unrealized gains. 
• Amid Bitcoin’s volatility issues, Japan was seen looking for new web 3 rules to stabilize trading.
• Mercari Japan, the e-commerce giant, announced Bitcoin payment integration by June, 2024. This move reflects Japan’s favourable crypto regulatory environment.

2.6. Singapore

• The Monetary Authority of Singapore (MAS) issued final guidelines for crypto payment providers recently. 
• MAS mandates that retail investors must pass a risk awareness assessment before investing. 
• Digi FT received key regulatory approvals from MAS, becoming the first exchange with AMM. 
• MAS would receive expanded powers in 2024. The provisions of the Financial Institutions (Miscellaneous Amendments) Bill 2024 would expand MAS power to issue directions to capital markets service license holders that conduct unregulated business. 
• FIMA bill will allow MAS to issue written directions on standards that should be taken care of when CMSL holders conduct unregulated business.

2.7. India

• With less than a week left for the final presentation of the interim budget by the Union finance minister, Nirmala Sitharaman, experts are guessing a well-defined framework for crypto operations and tax structure to address crypto issues in India.
• ICRA anticipates potential changes in the Interim Union budget for 2025. The removal of security transaction tax, double taxation on dividends, a regulatory framework by the government to include participation in the crypto market.

Crypto Adoption In January 2024

3.1. Adoption by cities

Here is a rank-wise analysis of how different cities of the world have given cryptocurrency a shot! New York leads, closely followed by London. We might praise the regulatory environment here which is well in sync with the overall crypto atmosphere. 

• Four South-African cities among the 2024 most crypto friendly ones in the world!
• New York stands out as the most crypto-ready city with a total score of 85.85/100, proving its status as a financial powerhouse. 
• Singapore emerges as Asia’s crypto leader in 2024’s beginning.
• London closely follows New York at 84.15/100 due to its supportive regulatory framework. 
• Los Angeles is the city with the most crypto ATMs in the world.
• However, Tokyo ranks as the least crypto ready among top 50 cities due to its cautious regulatory scenario.
• Cape town, Pretoria, Johannesburg and Durban were leading from South Africa.

Cape Town (Rank 11) : Crypto Readiness Score: 60.45

• Crypto Ownership: Ranking 11th globally, Cape Town shows a growing interest with a score of 47.36 in crypto ownership.
• Employment Opportunities: Abundant job opportunities in the crypto sector, scoring 88.21, contribute to Cape Town’s crypto-ready status.
• Crypto Events: Hosting a moderate number of crypto events, Cape Town balances innovation with a solid regulatory foundation.
• Legal Readiness: Cape Town’s ability to balance advancement with regulatory strength makes it a crypto-ready city.

Johannesburg (Rank 15) : Crypto Readiness Score: 57.83

• Crypto Ownership: Johannesburg, ranking 15th globally, shows off a strong crypto ownership score of 23.43, showcasing a vibrant community of crypto enthusiasts.
• Employment Opportunities: With a robust job market in the crypto sector, Johannesburg positions itself as a hub for crypto-related employment in 2024.
• Legal Framework: Johannesburg’s perfect score of 100.00 in the legal environment underscores its supportive regulatory landscape for cryptocurrencies.
• Business Acceptance: Despite moderate business acceptance (6.06), Johannesburg’s collective strengths position it as one of the most crypto-ready cities globally.

Durban (Rank 43) : Crypto Readiness Score: 53.97

• Crypto Ownership: Durban, positioned 43rd globally, is on the rise with a score of 17.15 for crypto ownership.
• Employment Opportunities: Robust job opportunities, scoring 93.64, contribute to Durban’s potential in the crypto space.
• Legal Environment: Durban boasts a perfect score of 100.00 in a supportive legal environment.
• Business Acceptance: In the early stages, with a score of 0.00 for crypto acceptance, Durban holds promise for future growth in the digital finance landscape.

3.2. Crypto ownership pattern (Gender)

2024 is welcomed well by women in comparison to men. Here is an analysis on how the percentage has changed in comparison to the past year.

2023:

2024:

3.3. Impact of Bitcoin ETF on Adoption

56% of current crypto owners are optimistic that market prices will increase in 2024. They think that 2024 could be excellent due to the arrival of ETF finally!

3.4. Cryptocurrency Adoption report

Among the top 5 widely adopted ones, Bitcoin and Ethereum led, with Dogecoin closely behind. 

3.5. Institutional Adoption

• The approval of the Bitcoin Spot ETF is surely a turning point. It would broaden and deepen liquidity in the market. 
• 2024 might see growth of tokenization markets, with Goldman Sachs launching its tokenization platform, GS DAP. 
• AI and blockchain convergence is leading to mass crypto adoption by institutions. 

Conclusion 

The analysis is the collection of comprehensive data from the most reliable resources across the crypto industry. We have compiled the basics of all the developmental activities which took place in the month of January in 2024.